Who is Bridge the Gap Funding?

Bridge the Gap Funding is finance company that provides private money to real estate investors.

What is Transactional Funding?

Transactional Funding is a short-term loan used by Real Estate Investors to purchase an investment property, which will be resold for profit. Transactional Funding is also referred to as: an ABC Transaction, Back-to-Back Funding or Back-to-Back Financing, Simultaneous Funding or Simultaneous Financing, Temporary Funding or Temporary Financing, Transitional Funding or Transitional Financing, Interim Funding or Interim Financing, Bridge Funding or Bridge Financing, Transition Funding or Transition Financing.

What types of loans does Bridge the Gap Funding offer?

3 Day (best for back-to-back funding) more

What are Bridge the Gap Funding loan qualifications?

As an asset based lender, we a concerned more with the value, condition and marketability of the property than we are with your personal credit or income.
Typically cash from the borrower is required on our loans. We will ask you to prove that you have the required funds for closing a transaction as part of loan underwriting packet we put together when you approach us for a loan. We need each borrower to have “skin in the game” to ensure the loan will be repaid and our collateral is sound.
We lend to entities only, not to individuals, so each borrower needs to have an LLC, self-directed IRA or Inc. set up and clear of issues for us to lend to it.
Our loans are commercial loans; which means we lend to entities and the properties are NEVER owner-occupied by the borrower.
5. We loan in first position on the title of the property and never in second position. We will be the only lien holder on the property until our loan is repaid.

What are Bridge the Gap Funding underwriting conditions?

LLC Articles of Organization
LLC EIN (employer identification) paperwork
LLC Operating Agreement (if one exists for the entity)
Two forms of government issued identification
Lease Agreement (if property is currently leased to a tenant)
Purchase agreement (if property is currently leased to a tenant)
Property Pictures (5 pics interior and 5 pics exterior)(emailed pdfs or jpegs only)
Proof of your portion of the funds needed to close the transaction on a bank statement showing your name and account number. These funds MUST come from you and not be a seller carry-back, 2nd mortgage or lien against the property.
Valuation information for the property based on a broker price opinion from our preferred provider.
If the property was purchased within the last year, please provide the HUD settlement statement and any rehab receipts
Sale agreement (on our 3 Day loan program only)
Rent roll/payment history for the property.
Letter of good standing from your bank or financial institution for your LLC.

What are Bridge the Gap Funding loan fees?

Please see Funding Options page.

Will Bridge the Gap Funding funding cover my closing costs?

No. Title fees, Attorney’s fees, valuation reports and any required pre-paid items (interest, HOA fees, taxes, etc.) are the responsibility of the borrower and will be paid by the borrower at the time of closing.

Does Bridge the Gap Funding fund deposits or earnest money?

No. Transactional Funding only provides short-term funding to Real Estate Investors for the purchase of an investment property, which will be resold for a profit.

Will Bridge the Gap Funding loan me money to rehabilitate or remodel a property?

No. We will fund based on the purchase price of the property.

Do any of your loans include rehab cost in the purchase price or value of the property?

No. We will fund only on the purchase price of the property, or our own valuation model.

What types of transactions will Bridge the Gap Funding fund?

Flip: Used for the purchase of a property; whereby the borrower has both a contract to purchase and a contract to sell a property and has scheduled consecutive or back-to-back closings where the property will be purchased and immediately resold for a profit.

What types of transactions will Bridge the Gap Funding NOT fund?

Earnest Money, Escrow Deposits, Mobile Homes, Non-Real Estate, Outside the United States, where the party is reselling the property to themselves or a related party, Real Estate Notes, Second mortgages.

What type of entities does Bridge the Gap Funding fund?

Bridge the Gap Funding will only fund your LLC, Corporation or IRA. We can only fund for investment purposes – to sell the property and make a profit. We cannot fund on primary residences.

What do I need before I request funds?

If your transaction is a purchase transaction, you MUST have an accepted offer, signed by both the buyer and seller and bank approval of a short-sale, if the sale is a short-sale, before we review your transaction.

The offer should NOT be a CASH OFFER if there is a loan involved.

You MUST have an entity formed and the contract for your purchase in the entity’s name and not your personal name.

How do I submit a request for funds?

Once you have met all the requirements and have compiled all the necessary documents, you can request funds by completing our online application.

I submitted a request for funds. What do I do next?

Nothing. We will contact you to confirm your request, collect needed documentation from you, and begin the due diligence process on the property. Watch your email for additional documentation required. Please be sure your email address is correctly entered on the Request Funds form.

Does Bridge the Gap Funding pull a credit report, or require collateral?
Your collateral is your down payment for the property we are buying together. Bridge the Gap Funding will not pull your personal credit report unless there is reason and you have authorized us to do so.

If I am using Transactional Funding, is it considered a Cash Offer?

No. Bridge the Gap Funding is a private money lender, so you need to state in your contract that you are getting a loan. You should disclose, however, that your funding is coming from a private money lender and is not a conventional loan.

How quickly can I receive funding once everything is finalized?

We need approximately three weeks for our due diligence and valuation of the property. As we require title insurance on each transaction, the title company may have delays in searching and cleaning the title of the property. Once ALL documents are collected, documents can be drawn in 1 business day and a wire transfer can be sent within 1 business day.

What happens if I can’t pay off the loan during the allotted timeframe?

There are no extensions on our 3 Day loan.

How does Bridge the Gap Funding value real estate property?

The property is valued at the lower of the purchase price or the broker price opinion from our preferred provider. Our due diligence process will require you to pay for the broker price opinion.

What is a Proof of Funds letter?

A Proof of Funds letter confirms for the seller that you have the funds required for the purchase and that you are a legitimate buyer who can close quickly and on time.

How do I request a Proof of Funds letter?

To request a Proof of Funds letter, please click here and complete the form.

How long does it take to receive a Proof of Funds letter?

The request for a Proof of Funds letter is usually processed immediately.

Who do I give the Proof of Funds letter to?

Typically, the Proof of Funds letter is included with your offer to purchase a property to indicate to the seller that you will have funds available to fund the transaction.

What is Hard Money?

Hard Money refers to a non-conventional loan, which is secured by, and primarily based on, the value of an asset. Real Estate is the most common asset for hard money loans. Most hard money lenders are small companies who will lend 50-75% of the value of the property for several months to several years.

What does LTV mean?

Loan to Value (LTV) is the ratio of what is leant against the property compared to the value of the property.

What does Free and Clear mean?

A term used to describe the situation of someone when he or she gains outright ownership of an asset, such as when it is completely paid off and no creditor has a claim on the property.